CHANGES IN THE WORKING WORLD

The administration of Prime Minister Koizumi Jun’ichirô has since its inception pressed for structural reform “without sanctuary.” This has sparked a backlash among people who see this reform drive as expanding the gaps between rich and poor in Japanese society. Others are focusing their critical attention on the nation’s employment situation—and in particular on the increasing numbers of “freeters” (furîtâ), young people who jump from one part-time job to another, and NEETs, or those “not in education, employment, or training,” who are having a growing impact on the labor scene in Japan.

The August 2006 issues of the nation’s monthly journals included a number of articles focusing on these issues: income inequality, employment, and young working-age people. In “‘Kakusa’ no shôtai o mikiwameyo!” (See Through to the True Nature of the Income Gap!), published in Shokun, Professor Ôtake Fumio of Osaka University presents his analysis of the current socioeconomic situation. According to Ôtake, gaps in income have widened more or less continuously over the past 20 years, but this is actually due to the overall graying of the Japanese population. He points to the broad range of incomes among senior citizens as evidence for this.

It is important to note, however, that the percentage of seniors in low-income brackets is gradually declining thanks to the welfare safety net put in place for them. Another factor requiring attention here is the “employment ice age” that afflicted young job seekers, especially around the year 2000. This brought about income disparities primarily among young people by boosting the numbers of freeters and unemployed people. This “ice age” now appears to be abating, though, and hiring numbers are on the rise among new graduates as the economy climbs back to health.

Ôtake argues that the income gap is not as important as the asset gap, given that one primary effect of an economic recovery will be climbing values for stocks, real estate, and other holdings. It is this asset gap, he states, that lies at the root of the growing public perception that inequality is on the rise.

Even Ôtake admits that the income gaps that emerged among the younger generation during the “ice age” will be hard to close. Human resources consultant Jô Shigeyuki focuses on this segment of the working population in the Chûô Kôron article that we carry below. He notes that very few of the people now working as nonregular employees will be able to transfer into regular, full-time positions with proper benefits, since age-based pay scales make it easier for a company to hire younger full-timers than older workers.

Jô believes that Japanese employers are almost certain to move to a more Western-style system, with pay tied to job evaluations rather than to age or years of service. The challenge will be for employers to retain the positive aspects of the seniority-based system as they make this shift.

Some observers feel that this seniority-based employment system remains the better choice, though. One of these is Matsubara Ryûichirô, a professor at the University of Tokyo, who states his case in “Seika shugi wa yagate ikizumaru” (Focusing on Results Can Only Take Us So Far), also published in Chûô Kôron. Matsubara’s arguments are familiar ones: He focuses on the relationships of trust and sense of belonging that are fostered within Japan’s traditional company organizations, describing them as leading to increased productivity. In this connection the key to success is strong internal communication, and barriers to that communication—walls between older and younger workers, or between full-time, regular employees and others—are what need to be eradicated.

Professor Miyamoto Michiko of the University of the Air examines the freeter population in her Chûô Kôron article, which we also carry below. Noting that some 60% of freeters are women, she criticizes commentators for overlooking this fact and sweeping female-specific labor issues into the vague category of youth employment problems. Without steps to address these issues in the labor market, warns Miyamoto, women will remain unable to make full use of their talents in Japan’s society.

Miyamoto indicates the need for a diversification of working styles. Japan can no longer focus solely on the work patterns of male employees as it crafts its systems. She urges Japan to begin addressing the differences in treatment of part-time and full-time workers.

Professor Tachibanaki Toshiaki of Kyoto University provides another take on the freeter issue in “Dankai wa furîtâ to renkei seyo” (The Baby Boomers Should Ally with the Freeters), published in Bungei Shunjû. He argues for a rethinking of the retirement system to allow people to choose when to begin receiving pension payments. This would allow for early retirement, clearing out company rolls and creating opportunities to hire more young workers.

Also appearing in Bungei Shunjû is a piece from Mitarai Fujio, chairman and CEO of Canon and the head of Nippon Keidanren (Japan Business Federation), setting forth his plan to “innovate Japan.” In this essay, which we also carry below, Mitarai urges young people to develop a “spirit of personal autonomy,” citing the lack of this spirit as one reason for the rise of NEETs in today’s Japan. He also criticizes the business approach of Internet firm Livedoor and the investment fund run by Murakami Yoshiaki, both of which were involved in alleged violations of the Securities and Exchange Law. Mitarai rejects the “market capitalization management” of these firms, arguing that companies must fulfill four main responsibilities: “to provide stable livings for their employees, to provide returns to shareholders, to contribute to society, and to generate surplus funds for additional investment.”

The articles in this section provide a balanced overview of the inequalities, employment problems, and conditions facing young workers in Japan today, and should help our readers get a firmer grasp on the present state of Japanese society. (Kondô Motohiro, Professor, Nihon University)

© 2006 Japan Echo Inc.